12 U.S.C. § 24 | Corporate powers of associations

Upon duly making and filing articles of association and an organization certificate a national banking association shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power—

First. To adopt and use a corporate seal.

February 25, 1927February 25, 1927Second. To have succession from , or from the date of its organization if organized after , until such time as it be dissolved by the act of its shareholders owning two-thirds of its stock, or until its franchise becomes forfeited by reason of violation of law, or until terminated by either a general or a special Act of Congress or until its affairs be placed in the hands of a receiver and finally wound up by him.

Third. To make contracts.

Fourth. To sue and be sued, complain and defend, in any court of law and equity, as fully as natural persons.

Fifth. To elect or appoint directors, and by its board of directors to appoint a president, vice president, cashier, and other officers, define their duties, require bonds of them and fix the penalty thereof, dismiss such officers or any of them at pleasure, and appoint others to fill their places.

Sixth. To prescribe, by its board of directors, bylaws not inconsistent with law, regulating the manner in which its stock shall be transferred, its directors elected or appointed, its officers appointed, its property transferred, its general business conducted, and the privileges granted to it by law exercised and enjoyed.

ProvidedAugust 23, 193512 U.S.C. 1749aaa 12 U.S.C. 1713 12 U.S.C. 1454 42 U.S.C. 1460(h)42 U.S.C. 1437 42 U.S.C. 1437d(g)42 U.S.C. 1437d(g)42 U.S.C. 1437d(g)Provided1

1 So in original. Probably should be followed by a comma.

2 So in original.

2 Provided42 U.S.C. 3931 42 U.S.C. 3937(a)ProvidedProvided furthersection 1813 of this title 15 U.S.C. 77d(5)3

3 See References in Text note below.

15 U.S.C. 78c(a)(53)15 U.S.C. 78c(a)(41)4

4 So in original. The period probably should be preceded by an additional closing parenthesis.

Seventh. To exercise by its board of directors or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and bullion; by loaning money on personal security; and by obtaining, issuing, and circulating notes according to the provisions of title 62 of the Revised Statutes. The business of dealing in securities and stock by the association shall be limited to purchasing and selling such securities and stock without recourse, solely upon the order, and for the account of, customers, and in no case for its own account, and the association shall not underwrite any issue of securities or stock; , That the association may purchase for its own account investment securities under such limitations and restrictions as the Comptroller of the Currency may by regulation prescribe. In no event shall the total amount of the investment securities of any one obligor or maker, held by the association for its own account, exceed at any time 10 per centum of its capital stock actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund, except that this limitation shall not require any association to dispose of any securities lawfully held by it on . As used in this section the term “investment securities” shall mean marketable obligations, evidencing indebtedness of any person, copartnership, association, or corporation in the form of bonds, notes and/or debentures commonly known as investment securities under such further definition of the term “investment securities” as may by regulation be prescribed by the Comptroller of the Currency. Except as hereinafter provided or otherwise permitted by law, nothing herein contained shall authorize the purchase by the association for its own account of any shares of stock of any corporation. The limitations and restrictions herein contained as to dealing in, underwriting and purchasing for its own account, investment securities shall not apply to obligations of the United States, or general obligations of any State or of any political subdivision thereof, or obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969, or obligations issued under authority of the Federal Farm Loan Act, as amended, or issued by the thirteen banks for cooperatives or any of them or the Federal Home Loan Banks, or obligations which are insured by the Secretary of Housing and Urban Development under title XI of the National Housing Act [ et seq.] or obligations which are insured by the Secretary of Housing and Urban Development (hereinafter in this sentence referred to as the “Secretary”) pursuant to section 207 of the National Housing Act [], if the debentures to be issued in payment of such insured obligations are guaranteed as to principal and interest by the United States, or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association, or the Government National Mortgage Association, or mortgages, obligations or other securities which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant to section 305 or section 306 of the Federal Home Loan Mortgage Corporation Act [ or 1455], or obligations of the Federal Financing Bank or obligations of the Environmental Financing Authority, or obligations or other instruments or securities of the Student Loan Marketing Association, or such obligations of any local public agency (as defined in section 110(h) of the Housing Act of 1949 []) as are secured by an agreement between the local public agency and the Secretary in which the local public agency agrees to borrow from said Secretary, and said Secretary agrees to lend to said local public agency, monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments, or such obligations of a public housing agency (as defined in the United States Housing Act of 1937, as amended [ et seq.]) as are secured (1) by an agreement between the public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of such obligations, monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, (2) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Secretary if such contract shall contain the covenant by the Secretary which is authorized by subsection (g) of section 6 of the United States Housing Act of 1937, as amended [], and if the maximum sum and the maximum period specified in such contract pursuant to said subsection 6(g) [] shall not be less than the annual amount and the period for payment which are requisite to provide for the payment when due of all installments of principal and interest on such obligations, or (3) by a pledge of both annual contributions under an annual contributions contract containing the covenant by the Secretary which is authorized by section 6(g) of the United States Housing Act of 1937 [], and a loan under an agreement between the local public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of the obligations involved, moneys in an amount which (together with any other moneys irrevocably committed under the annual contributions contract to the payment of principal and interest on such obligations) will suffice to provide for the payment when due of all installments of principal and interest on such obligations, which moneys under the terms of the agreement are required to be used for the purpose of paying the principal and interest on such obligations at their maturity: , That in carrying on the business commonly known as the safe-deposit business the association shall not invest in the capital stock of a corporation organized under the law of any State to conduct a safe-deposit business in an amount in excess of 15 per centum of the capital stock of the association actually paid in and unimpaired and 15 per centum of its unimpaired surplus. The limitations and restrictions herein contained as to dealing in and underwriting investment securities shall not apply to obligations issued by the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, the Inter-American Development Bank  Bank for Economic Cooperation and Development in the Middle East and North Africa,, the North American Development Bank, the Asian Development Bank, the African Development Bank, the Inter-American Investment Corporation, or the International Finance Corporation,, or obligations issued by any State or political subdivision or any agency of a State or political subdivision for housing, university, or dormitory purposes, which are at the time eligible for purchase by a national bank for its own account, nor to bonds, notes and other obligations issued by the Tennessee Valley Authority or by the United States Postal Service: , That no association shall hold obligations issued by any of said organizations as a result of underwriting, dealing, or purchasing for its own account (and for this purpose obligations as to which it is under commitment shall be deemed to be held by it) in a total amount exceeding at any one time 10 per centum of its capital stock actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund. Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock issued by a corporation authorized to be created pursuant to title IX of the Housing and Urban Development Act of 1968 [ et seq.], and may make investments in a partnership, limited partnership, or joint venture formed pursuant to section 907(a) or 907(c) of that Act [ or 3937(c)]. Notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock issued by any State housing corporation incorporated in the State in which the association is located and may make investments in loans and commitments for loans to any such corporation: , That in no event shall the total amount of such stock held for its own account and such investments in loans and commitments made by the association exceed at any time 5 per centum of its capital stock actually paid in and unimpaired plus 5 per centum of its unimpaired surplus fund. Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock issued by a corporation organized solely for the purpose of making loans to farmers and ranchers for agricultural purposes, including the breeding, raising, fattening, or marketing of livestock. However, unless the association owns at least 80 per centum of the stock of such agricultural credit corporation the amount invested by the association at any one time in the stock of such corporation shall not exceed 20 per centum of the unimpaired capital and surplus of the association: , That notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation or a holding company which owns or controls such an insured bank if the stock of such bank or company is owned exclusively (except to the extent directors’ qualifying shares are required by law) by depository institutions or depository institution holding companies (as defined in ) and such bank or company and all subsidiaries thereof are engaged exclusively in providing services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a “banker’s bank”), but in no event shall the total amount of such stock held by the association in any bank or holding company exceed at any time 10 per centum of the association’s capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association’s acquiring more than 5 per centum of any class of voting securities of such bank or company. The limitations and restrictions contained in this paragraph as to an association purchasing for its own account investment securities shall not apply to securities that (A) are offered and sold pursuant to section 4(5) of the Securities Act of 1933 ();  (B) are small business related securities (as defined in section 3(a)(53) of the Securities Exchange Act of 1934 []); or (C) are mortgage related securities (as that term is defined in section 3(a)(41) of the Securities Exchange Act of 1934 (). The exception provided for the securities described in subparagraphs (A), (B), and (C) shall be subject to such regulations as the Comptroller of the Currency may prescribe, including regulations prescribing minimum size of the issue (at the time of initial distribution) or minimum aggregate sales prices, or both.

A national banking association may deal in, underwrite, and purchase for such association’s own account qualified Canadian government obligations to the same extent that such association may deal in, underwrite, and purchase for such association’s own account obligations of the United States or general obligations of any State or of any political subdivision thereof. For purposes of this paragraph—

(1) the term “qualified Canadian government obligations” means any debt obligation which is backed by Canada, any Province of Canada, or any political subdivision of any such Province to a degree which is comparable to the liability of the United States, any State, or any political subdivision thereof for any obligation which is backed by the full faith and credit of the United States, such State, or such political subdivision, and such term includes any debt obligation of any agent of Canada or any such Province or any political subdivision of such Province if—

(A) the obligation of the agent is assumed in such agent’s capacity as agent for Canada or such Province or such political subdivision; and

(B) Canada, such Province, or such political subdivision on whose behalf such agent is acting with respect to such obligation is ultimately and unconditionally liable for such obligation; and

(2) the term “Province of Canada” means a Province of Canada and includes the Yukon Territory and the Northwest Territories and their successors.

section 142(b)(1) of title 26oIn addition to the provisions in this paragraph for dealing in, underwriting, or purchasing securities, the limitations and restrictions contained in this paragraph as to dealing in, underwriting, and purchasing investment securities for the national bank’s own account shall not apply to obligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of ) issued by or on behalf of any State or political subdivision of a State, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State or political subdivision of a State, if the national bank is well capitalized (as defined in section 1831 of this title).

Eighth. To contribute to community funds, or to charitable, philanthropic, or benevolent instrumentalities conducive to public welfare, such sums as its board of directors may deem expedient and in the interests of the association, if it is located in a State the laws of which do not expressly prohibit State banking institutions from contributing to such funds or instrumentalities.

section 1721(g) of this titleNinth. To issue and sell securities which are guaranteed pursuant to .

Tenth. To invest in tangible personal property, including, without limitation, vehicles, manufactured homes, machinery, equipment, or furniture, for lease financing transactions on a net lease basis, but such investment may not exceed 10 percent of the assets of the association.

Eleventh. To make investments directly or indirectly, each of which is designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families (such as by providing housing, services, or jobs). An association shall not make any such investment if the investment would expose the association to unlimited liability. The Comptroller of the Currency shall limit an association’s investments in any 1 project and an association’s aggregate investments under this paragraph. An association’s aggregate investments under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund, and the association is adequately capitalized. In no case shall an association’s aggregate investments under this paragraph exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund. The foregoing standards and limitations apply to investments under this paragraph made by a national bank directly and by its subsidiaries.

July 1, 1922, ch. 257, § 1 42 Stat. 767 Feb. 25, 1927, ch. 191, § 2 44 Stat. 1226 June 16, 1933, ch. 89, § 16 48 Stat. 184 Aug. 23, 1935, ch. 614 49 Stat. 709 Feb. 3, 1938, ch. 13, § 13 52 Stat. 26 June 11, 1940, ch. 301 54 Stat. 261 June 29, 1949, ch. 276, § 1 63 Stat. 298 July 15, 1949, ch. 338 63 Stat. 439 Apr. 9, 1952, ch. 169 66 Stat. 49 Aug. 2, 1954, ch. 649 68 Stat. 622 Aug. 23, 1954, ch. 834, § 2 68 Stat. 771 July 26, 1956, ch. 741 70 Stat. 667 Pub. L. 86–137, § 2Aug. 6, 195973 Stat. 285 Pub. L. 86–147, § 10Aug. 7, 195973 Stat. 301 Pub. L. 86–230, § 1(a)Sept. 8, 195973 Stat. 457 Pub. L. 86–278Sept. 16, 195973 Stat. 563 Pub. L. 86–372, title IV, § 420Sept. 23, 195973 Stat. 679 Pub. L. 88–560, title VII, § 701(c)Sept. 2, 196478 Stat. 800 Pub. L. 89–369, § 10Mar. 16, 196680 Stat. 72 Pub. L. 89–754, title V, § 504(a)(1)Nov. 3, 196680 Stat. 1277 Pub. L. 90–19, § 27(a)May 25, 196781 Stat. 28 Pub. L. 90–448, title VIIIAug. 1, 196882 Stat. 543 Pub. L. 91–375, § 6(d)Aug. 12, 197084 Stat. 776 Pub. L. 92–318, title I, § 133(c)(1)June 23, 197286 Stat. 269 Pub. L. 91–143, § 12(b)Dec. 9, 1969Pub. L. 92–349, title I, § 101July 13, 197286 Stat. 466 Pub. L. 92–500, § 12(n)Oct. 18, 197286 Stat. 902 Pub. L. 93–100, § 5(c)Aug. 16, 197387 Stat. 344 Pub. L. 93–224, § 14Dec. 29, 197387 Stat. 941 Pub. L. 93–234, title II, § 207Dec. 31, 197387 Stat. 984 Pub. L. 93–383, title II, § 206Aug. 22, 197488 Stat. 668 Pub. L. 96–221, title VII, § 711Mar. 31, 198094 Stat. 189 Pub. L. 97–35, title XIII, § 1342(a)Aug. 13, 198195 Stat. 743 Pub. L. 97–320, title IV, § 404(b)Oct. 15, 198296 Stat. 1511 Pub. L. 97–457, § 18Jan. 12, 198396 Stat. 2509 Pub. L. 98–440, title I, § 105(c)Oct. 3, 198498 Stat. 1691 Pub. L. 98–473, title I, § 101(1) [title I, § 101]Oct. 12, 198498 Stat. 1884 Pub. L. 100–86, title I, § 108Aug. 10, 1987101 Stat. 579 Pub. L. 100–449, title III, § 308Sept. 28, 1988102 Stat. 1877 Pub. L. 101–513, title V, § 562(c)(10)(B)Nov. 5, 1990104 Stat. 2036 Pub. L. 102–485, § 6(a)Oct. 23, 1992106 Stat. 2774 Pub. L. 103–182, title V, § 541(h)(1)Dec. 8, 1993107 Stat. 2167 Pub. L. 103–325, title II, § 206(c)Sept. 23, 1994108 Stat. 2199 Pub. L. 104–208, div. A, title I, § 101(c) [title VII, § 710(b)]Sept. 30, 1996110 Stat. 3009–121 Pub. L. 106–102, title I, § 151Nov. 12, 1999113 Stat. 1384 Pub. L. 109–171, title II, § 2102(b)Feb. 8, 2006120 Stat. 9 Pub. L. 109–173, § 9(a)Feb. 15, 2006119 Stat. 3616 Pub. L. 109–351, title III, § 305(a)Oct. 13, 2006120 Stat. 1970 Pub. L. 110–289, div. B, title V, § 2503(a)July 30, 2008122 Stat. 2857 (R.S. § 5136; , ; , ; , ; , title III, § 308, ; , ; , ; , ; , title VI, § 602(a), ; , ; , title II, § 203, ; , ; , title II, § 201(c), ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , §§ 804(c), 807(j), title IX, § 911, title XVII, § 1705(h), , , 545, 550, 605; , , ; , , ; , , as added , , ; , , ; , , ; , , ; , , ; , title VIII, § 805(c)(1), , , 726; , , ; , , ; , , ; , , ; , , ; , , , 1885; , , ; , , ; , (e)(1)(B), , , 2037; , , ; , , ; , title III, §§ 322(a)(1), 347(b), , , 2226, 2241; , title II, § 2704(d)(7), , , 3009–181, 3009–489; , , ; , , ; , , ; , , ; , , .)

Amendment of Section

section 501(c) of Pub. L. 100–449For termination of amendment by , see Effective and Termination Dates of 1988 Amendment note below.

Editorial Notes

References in Text

Title 62 of the Revised Statutes, referred to in par. Seventh, was in the original “this Title” meaning title LXII of the Revised Statutes, consisting of R.S. §§ 5133 to 5244, which are classified to this section and sections 16, 21, 22, 23, 24a, 25a, 25b, 26, 27, 29, 35 to 37, 39, 43, 52, 53, 55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93, 93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481 to 485, 501, 541, 548, and 582 of this title. See, also, sections 8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and Criminal Procedure. For complete classification of R.S. §§ 5133 to 5244 to the Code, see Tables.

section 9 of Pub. L. 91–143 section 101 of title I of Pub. L. 92–349July 13, 197286 Stat. 464 Section 9 of the National Capital Transportation Act of 1969, referred to in par. Seventh, is , as added by , , , which is not classified to the Code.

act July 17, 1916, ch. 245 39 Stat. 360 Pub. L. 92–181, § 5Dec. 10, 197185 Stat. 624 The Federal Farm Loan Act, referred to in par. Seventh, is , , which was classified to section 641 et seq. of this title prior to its repeal by .26(a), , . See chapter 23 (§ 2001 et seq.) of this title.

act June 27, 1934, ch. 847 48 Stat. 1246 act June 27, 1934, ch. 847 Nov. 3, 1966Pub. L. 89–754, title V, § 502(a)80 Stat. 1274 section 1701 of this titleThe National Housing Act, referred to in par. Seventh, is , . Title XI of the National Housing Act is title XI of , as added by act , , , which is classified generally to subchapter IX–B (§ 1749aaa et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see and Tables.

42 U.S.C. 1460 section 5316 of Title 42 42 U.S.C. 1450Jan. 1, 1975Section 110 of the Housing Act of 1949 [], referred to in par. Seventh, was omitted from the Code pursuant to , The Public Health and Welfare, which terminated authority to make grants or loans under title I of that Act [ et seq.] after .

act Sept. 1, 1937, ch. 896 Pub. L. 93–383, title IIAug. 22, 197488 Stat. 653 section 1437 of Title 42The United States Housing Act of 1937, referred to in par. Seventh, is , as revised generally by , , , and is classified to chapter 8 (§ 1437 et seq.) of Title 42. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Pub. L. 90–448Aug. 1, 196882 Stat. 476 section 1701 of this titleThe Housing and Urban Development Act of 1968, referred to in par. Seventh, is , , . Title IX of the Housing and Urban Development Act is classified principally to chapter 49 (§ 3931 et seq.) of Title 42. For complete classification of this Act to the Code, see Short Title of 1968 Amendment note set out under and Tables.

Pub. L. 112–106Section 4 of the Securities Act of 1933, referred to in par. Seventh, was amended by section 201(b), (c) of , and the provisions which formerly appeared in section 4 of the Act now appear in section 4(a) of the Act.

Codification

Pub. L. 98–473Mar. 13, 1984section 101(1) of Pub. L. 98–473Amendment by is based on section 211(a) of title II of S. 2416, as introduced in the Senate on , which was enacted into permanent law by .

act June 3, 1864, ch. 106, § 8 13 Stat. 101 section 38 of this titleR.S. § 5136 derived from , , which was the National Bank Act. See .

Amendments

Pub. L. 110–2892008—Par. Eleventh. , which directed substitution of “is designed primarily to promote the public welfare, including the welfare of” for “promotes the public welfare by benefitting primarily” in first sentence, was executed by making the substitution for “promotes the public welfare by benefiting primarily” to reflect the probable intent of Congress.

Pub. L. 109–3512006—Par. Eleventh. amended par. generally. Prior to amendment, par. read as follows: “Eleventh. To make investments designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families (such as by providing housing, services, or jobs). A national banking association may make such investments directly or by purchasing interests in an entity primarily engaged in making such investments. An association shall not make any such investment if the investment would expose the association to unlimited liability. The Comptroller of the Currency shall limit an association’s investments in any 1 project and an association’s aggregate investments under this paragraph. An association’s aggregate investments under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the Deposit Insurance Fund, and the association is adequately capitalized. In no case shall an association’s aggregate investments under this paragraph exceed an amount equal to the sum of 10 percent of the association’s capital stock actually paid in and unimpaired and 10 percent of the association’s unimpaired surplus fund.”

Pub. L. 109–173, in fifth sentence, substituted “Deposit Insurance Fund” for “affected deposit insurance fund”.

Pub. L. 109–171 Pub. L. 104–208, § 2704(d)(7) repealed . See 1996 Amendment note below.

Pub. L. 106–102 section 142(b)(1) of title 26o1999—Par. Seventh. inserted at end “In addition to the provisions in this paragraph for dealing in, underwriting, or purchasing securities, the limitations and restrictions contained in this paragraph as to dealing in, underwriting, and purchasing investment securities for the national bank’s own account shall not apply to obligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of ) issued by or on behalf of any State or political subdivision of a State, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State or political subdivision of a State, if the national bank is well capitalized (as defined in section 1831 of this title).”

Pub. L. 104–208, § 101(c) [§ 710(b)]1996—Par. Seventh. , in seventh sentence, inserted “Bank for Economic Cooperation and Development in the Middle East and North Africa,” after “the Inter-American Development Bank”.

Pub. L. 109–171Par. Eleventh. Pub. L. 104—208, § 2704(d)(7), which directed the amendment of the fifth sentence by substituting “Deposit Insurance Fund” for “affected deposit insurance fund”, was repealed by . See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

Pub. L. 103–325, § 347(b)15 U.S.C. 78c(a)(41)15 U.S.C. 78c(a)(41)1994—Par. Seventh. , in last sentence of first par., substituted “(). The exception provided for the securities described in subparagraphs (A), (B), and (C) shall be subject to such regulations” for “()), subject to such regulations”.

Pub. L. 103–325, § 322(a)(1)(A)section 1813 of this title, in fifth proviso inserted “or depository institution holding companies (as defined in )” after “(except to the extent directors’ qualifying shares are required by law) by depository institutions”.

Pub. L. 103–325, § 322(a)(1)(B), which directed substitution in fifth proviso of “services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a ‘banker’s bank’)” for “services for other depository institutions and their officers, directors and employees”, was executed by making the substitution for “services for other depository institutions and their officers, directors, and employees” to reflect the probable intent of Congress.

Pub. L. 103–325, § 206(c), substituted “(B) are small business related securities (as defined in section 3(a)(53) of the Securities Exchange Act of 1934); or (C) are mortgage related securities” for “or (B) are mortgage related securities”.

Pub. L. 103–1821993—Par. Seventh. inserted “the North American Development Bank,” after “Inter-American Development Bank,”.

Pub. L. 102–4851992—Par. Eleventh. added par. Eleventh.

Pub. L. 101–5131990—Par. Seventh. inserted “the European Bank for Reconstruction and Development,” before “the Inter-American Development Bank,” and substituted “the African Development Bank, the Inter-American Investment Corporation, or the International Finance Corporation,” for “the African Development Bank or the Inter-American Investment Corporation,”.

Pub. L. 100–4491988—Par. Seventh. temporarily inserted provisions authorizing national banking associations to deal in, underwrite, and purchase Canadian government obligations for the association’s own account. See Effective and Termination Dates of 1988 Amendment note below.

Pub. L. 100–861987—Par. Tenth. added par. Tenth.

Pub. L. 98–4731984—Par. Seventh. inserted reference to the Inter-American Investment Corporation.

Pub. L. 98–440 15 U.S.C. 77d(5)15 U.S.C. 78c(a)(41) inserted provision that the limitations and restrictions contained in this paragraph as to an association purchasing investment securities for its own account shall not apply to securities offered and sold pursuant to section , or that are mortgage related securities (as defined in ), subject to such regulations as the Comptroller of the Currency may prescribe.

Pub. L. 97–4571983—Par. Seventh. substituted “10 per centum of the association’s” for “10 per centum of its” after “exceed at any time”.

Pub. L. 97–320Provided furtherProvided further1982—Par. Seventh. substituted “, That notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation or a holding company which owns or controls such an insured bank if the stock of such bank or company is owned exclusively (except to the extent directors’ qualifying shares are required by law) by depository institutions and such bank or company and all subsidiaries thereof are engaged exclusively in providing services for other depository institutions and their officers, directors, and employees, but in no event shall the total amount of such stock held by the association in any bank or holding company exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association’s acquiring more than 5 per centum of any class of voting securities of such bank or company” for “, That, notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation if the stock of such bank is owned exclusively by other banks (except to the extent State law requires directors qualifying shares) and if such bank is engaged exclusively in providing banking services for other banks and their officers, directors, or employees, but in no event shall the total amount of such stock held by the association exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus, and in no event shall the purchase of such stock result in the association’s acquiring more than 5 per centum of any class of voting securities of such bank”.

Pub. L. 97–351981—Par. Seventh. inserted reference to the African Development Bank.

Pub. L. 96–2211980—Par. Seventh. inserted proviso relating to purchase of stock in bankers’ banks.

Pub. L. 93–383 section 1421a(b) of title 421974—Par. Seventh. substituted “section 6(g) of the United States Housing Act of 1937” for references to wherever appearing, struck out “either” before “(1)”, “(which obligations shall have a maturity of not more than eighteen months)” in cl. (1) and “or” before “(2)”, added cl. (3), and inserted reference to mortgages, obligations, or other securities sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of this title.

Pub. L. 93–2341973—Par. Seventh. authorized investments by national banks in agricultural credit corporations.

Pub. L. 93–224 inserted “or obligations of the Federal Financing Bank” after “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association”.

Pub. L. 93–100 inserted provision that the association may purchase shares of stock issued by state housing corporations incorporated in the state in which the association is located and make investments in loans and commitments for loans to such corporations with certain limitations.

Pub. L. 92–5001972—Par. Seventh. inserted “or obligations of the Environmental Financing Authority” after “Government National Mortgage Association”.

Pub. L. 92–349 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969.

Pub. L. 92–318 included obligations or other instruments or securities of the Student Loan Marketing Association.

Pub. L. 91–3751970—Par. Seventh. made limitations and restrictions contained in this section as to dealing in and underwriting investment securities inapplicable to bonds, notes and other obligations issued by the United States Postal Service.

Pub. L. 90–448, § 807(j)1968—Par. Seventh. , inserted “or the Government National Mortgage Association” after “Federal National Mortgage Association”.

Pub. L. 90–448, § 911, authorized the association to purchase for its own account shares of stock issued by a corporation authorized to be created pursuant to sections 3931–3940 of title 42, and to make investments in a partnership, limited partnership, or joint venture formed pursuant to section 3937(a) or 3937(c) of title 42.

Pub. L. 90–448, § 1705(h), included obligations issued by any State or political subdivision or any agency of a State or political subdivision for housing, university, or dormitory purposes.

Pub. L. 90–448, § 804(c)Par. Ninth. , added par. Ninth.

Pub. L. 90–191967—Par. Seventh. substituted “Secretary of Housing and Urban Development (hereafter in this sentence referred to as the ‘Secretary’)” for “Federal Housing Administrator”; and “Secretary” for “Housing and Home Finance Administrator” after “local public agency and the”, for “Administrator” in two instances just before “agrees to lend”, and for “Public Housing Administration” wherever appearing in cls. (1) and (2), respectively.

Pub. L. 89–7541966—Par. Seventh. made limitations and restrictions for dealing, underwriting, and purchasing for its own account of investment securities inapplicable to obligations which are insured by Secretary of Housing and Urban Development under provisions relating to mortgage insurance for group practice facilities.

Pub. L. 89–369 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations issued by the Asian Development Bank.

Pub. L. 88–5601964—Par. Seventh. substituted “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association” for “or obligations of the Federal National Mortgage Association”.

Pub. L. 86–3721959—Par. Seventh. substituted “monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments” for “prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity” after “local public agency,”.

Pub. L. 86–278 substituted “any” for “either” before “of said organizations” in last sentence.

Pub. L. 86–230 struck out “or the Home Owners’ Loan Corporation” after “Federal Home Loan Banks”.

Pub. L. 86–147 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations issued by the Inter-American Development Bank.

Pub. L. 86–137 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to bonds, notes and other obligations issued by the Tennessee Valley Authority.

Pub. L. 86–278 substituted “any” for “either” before “of said organizations” in last sentence.

Pub. L. 86–230 struck out “or the Home Owners’ Loan Corporation” after “Federal Home Loan Banks”.

July 26, 19561956—Par. Seventh. Act , removed restriction which prohibited a national bank from investing in obligations of the thirteen banks for cooperatives an amount exceeding 10 percent of its capital stock actually paid in and unimpaired and 10 percent of its unimpaired surplus.

Aug. 23, 19541954—Par. Seventh. Act , substituted “thirteen banks for cooperatives organized under the Farm Credit Act of 1933, or any of them” for “Central Bank for Cooperatives” in last sentence.

Aug. 2, 1954Act , substituted “or obligations of the Federal National Mortgage Association” for “or obligations of national mortgage associations” in sixth sentence.

Apr. 9, 19521952—Par. Seventh. Act , enabled national banks and State member banks of the Federal Reserve System to receive compensation in the distribution of debentures issued by the Central Bank for Cooperation.

July 15, 19491949—Par. Seventh. Act , inserted, in next to last sentence, “or such obligations of any local public agency (as defined in section 110(h) of the Housing Act of 1949) as are secured by an agreement between the local public agency and the Housing and Home Finance Administrator in which the local public agency agrees to borrow from said Administrator, and said Administrator agrees to lend to said local public agency, prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, or such obligations of a public housing agency (as defined in the United States Housing Act of 1937, as amended) as are secured either (1) by an agreement between the public housing agency and the Public Housing Administration in which the public housing agency agrees to borrow from the Public Housing Administration, and the Public Housing Administration agrees to lend to the public housing agency, prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, or (2) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Public Housing Administration if such contract shall contain the covenant by the Public Housing Administration which is authorized by subsection (b) of section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in such contract pursuant to said subsection 22(b) shall not be less than the annual amount and the period for payment, which are requisite to provide for the payment when due of all installments of principal and interest on such obligations”.

June 29, 1949Act , inserted last sentence to permit national banks and State member banks of the Federal Reserve System to deal in and underwrite obligations issued by the International Bank subject to certain limitations.

June 11, 19401940—Par. Eighth. Act , added par. Eighth.

Feb. 3, 19381938—Par. Seventh. Act , inserted “or obligations of national mortgage associations” in last sentence.

Aug. 23, 19351935—Par. Seventh. Act , amended second, fourth, and last sentences.

June 16, 19331933—Act , among other changes, struck out closing paragraph prohibiting transaction of any business by association prior to authorization by Comptroller, except that necessarily preliminary to organization.

Feb. 25, 19271927—Act , struck out definite period of succession in par. Second, and inserted provisos in par. Seventh.

Statutory Notes and Related Subsidiaries

Effective Date of 2006 Amendment

Pub. L. 109–173, § 9(j)Feb. 15, 2006119 Stat. 3618

Mar. 31, 2006Pub. L. 109–171 section 1811 of this title“This section [amending this section and sections 338a, 347b, 1431, 1441, 1441a, 1441b, 1464, 1467a, 1723i, 1735f–14, 1828a, 1833a, 1841, 1842, and 3341 of this title] and the amendments made by this section shall take effect on the day of the merger of the Bank Insurance Fund and the Savings Association Insurance Fund [, see 71 F.R. 20524] pursuant to the Federal Deposit Insurance Reform Act of 2005 [subtitle B (§§ 2101–2109) of title II of , see Short Title of 2006 Amendment note set out under ].”

, , , provided that:

Pub. L. 109–171Feb. 8, 2006section 2102(c) of Pub. L. 109–171 section 1821 of this titleAmendment by effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning , see , set out as a Merger of BIF and SAIF note under .

Effective Date of 1999 Amendment

Pub. L. 106–102, title I, § 161Nov. 12, 1999113 Stat. 1384

section 6701 of Title 15 section 18a of Title 15 section 41 of Title 15 section 6701 of Title 15Nov. 12, 1999“This title [enacting sections 24a, 1820a, 1828a, 1828b, 1831v, 1831w, and 1848a of this title and , Commerce and Trade, amending this section, sections 25a, 335, 371c, 1821, 1835a, 1841 to 1844, 1849, 1850, 1864, 1971, 2903, 3101, 3106, and 3107 of this title, and , repealing sections 78 and 377 of this title, and enacting provisions set out as notes under sections 252, 1843, and 4801 of this title and ] (other than section 104 [enacting ]) and the amendments made by this title shall take effect 120 days after the date of the enactment of this Act [].”

, , , provided that:

Effective Date of 1996 Amendment

section 2704(d)(7) of Pub. L. 104–208Jan. 1, 1999section 2704(c) of Pub. L. 104–208 section 1821 of this titleAmendment by effective , if no insured depository institution is a savings association on that date, see , formerly set out as a note under .

Effective Date of 1994 Amendment

Pub. L. 103–325, title III, § 347(d)Sept. 23, 1994108 Stat. 2241

section 78c of Title 15“The amendments made by this section [amending this section and , Commerce and Trade] shall become effective upon the date of promulgation of final regulations under subsection (c) [set out below].”

, , , provided that:

Effective and Termination Dates of 1988 Amendment

Pub. L. 100–449Jan. 1, 1989Pub. L. 100–449 section 2112 of Title 19Amendment by effective on date United States-Canada Free-Trade Agreement enters into force (), and to cease to have effect on date Agreement ceases to be in force, see section 501(a), (c) of , set out in a note under , Customs Duties.

Effective Date of 1981 Amendment

Pub. L. 97–35Aug. 13, 1981section 1372 of Pub. L. 97–35 section 290i of Title 22Amendment by effective , see , set out as an Effective Date note under , Foreign Relations and Intercourse.

Effective Date of 1973 Amendments

Pub. L. 93–224Dec. 29, 1973section 20 of Pub. L. 93–224 section 2281 of this titleAmendment by effective , see , set out as an Effective Date note under .

Pub. L. 93–100Aug. 16, 1973section 8 of Pub. L. 93–100 section 1469 of this titleAmendment by effective , see , set out as an Effective Date note under .

Effective Date of 1970 Amendment

Pub. L. 91–375 section 15(a) of Pub. L. 91–375 section 101 of Title 39For effective date of amendment by , see , set out as an Effective Date note preceding , Postal Service.

Effective Date of 1968 Amendment

Pub. L. 90–448 section 808 of Pub. L. 90–448 section 1716b of this titleFor effective date of amendment by title VIII of , see , set out as an Effective Date note under .

Effective Date of 1956 Amendment

July 26, 1956Jan. 1, 1957act July 26, 1956, ch. 741, title II, § 202(a) 70 Stat. 667 Amendment by act , effective , see , .

Effective Date of 1933 Amendment

Act June 16, 1933, ch. 89, § 16 48 Stat. 184 June 16, 1933, , provided that restrictions of this section as to dealing in investment securities shall take effect one year after .

Regulations

Pub. L. 103–325, title III, § 347(c)Sept. 23, 1994108 Stat. 2241

Sept. 23, 1994section 78c of Title 15“Not later than 1 year after the date of enactment of this Act [], the Comptroller of the Currency shall promulgate final regulations, in accordance with the thirteenth sentence of Paragraph Seventh of section 5136 of the Revised Statutes [this section] (as amended by subsection (b)), to carry out the amendments made by this section [amending this section and , Commerce and Trade].”

Dec. 2, 1996Dec. 31, 1996, , , provided that: [Final regulations implementing these amendments were published in the Federal Register on [61 F.R. 63972], effective .]

Abolition of Home Owners’ Loan Corporation

act June 30, 1953, ch. 170, § 21 67 Stat. 126 section 1463 of this titleFor dissolution and abolishment of Home Owners’ Loan Corporation, by , , see note set out under .

Executive Documents

Exception as to Transfer of Functions

section 1 of this titleFunctions vested by any provision of law in Comptroller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under .